Which of the following is an example of increasing returns to scale?
A)large oil tankers
B)declining average costs
C)railroads
D)metallurgic companies.

Name: Which of the following is an example of increasing returns to scale? A)large oil tankers B)declining average costs C)railroads D)metallurgic companies.
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Question

Quizplus · Accepted Answer

Large oil tankers are an example of increasing returns to scale because as the size of the tanker increases, the cost per barrel of oil transported decreases, resulting in lower average costs.

Which of the Following Is an Example of Increasing Returns